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Original poster

Overpaid by work - what now? Advise please

66 replies

Smarshian · 13/08/2020 07:06

I started a new job in November and was overpaid from the start. I told my manager and nothing was sorted. I then started getting paid even more - I told them again and they eventually sorted it, by which point I owed them £1800. They said they would take it from my salary over 10 months. Fine.
We are 3 months down the line and I’m applying for new jobs and hopefully will be leaving in the next 4-5 weeks if the interviews go well.
What happens then?
I will still owe about £1000. Can they still claim it? Can anyone help? I can’t afford to lose it all out of one pay packet.

OP posts:
Zhampagne · 13/08/2020 07:51

it feels a bit of a blow to not be paid at all in my last month

But you've already had the money from them. You aren't working for free. Arrange for a transfer from your savings to land in your current account on payday if you will feel cheated but this really is a non-issue.

DNpink82 · 13/08/2020 07:57

They are not allowed to take it from 1 pay packet, it has be agreed with you in writing how it will be reclaimed and they usually ask to take it back from the same amount of over payments so if you’ve been getting overpaid for 6 months they’ll take it back over 6 months. As with you leaving I’m unsure, they are not allowed to leave you in financial hardship so I think you have to agree a payment plan with them, ring the CAB they’ll be able to advise correctly

BarbaraofSeville · 13/08/2020 07:58

So you can afford for them to take the money straight away and you do have the savings to cover not being paid for your last month at work? What a non issue. If this was me, I'd really rather the overpayment was resolved now, instead of dragging it out over the next few months.

Going forward just set up a standing order to pay £180 pm to your savings account and in 10 months time, you'll be in the same position as you are now.

Interested in this thread?

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Employment advice
VettiyaIruken · 13/08/2020 07:59

Not be paid in your last month?
You have been paid in advance.
You just won't get even more extra pay.
I don't understand why you feel you are losing money.

blacktop · 13/08/2020 07:59

it feels a bit of a blow to not be paid at all in my last month

In what way? 'A bit of a blow' would be doing work and not getting paid for it. You have already been paid. They won't be doing anything wrong by taking back what you owe.

notheragain4 · 13/08/2020 08:01

Yes they can take it. My DH (when very young), left the job, was paid an additional month he shouldn't have been, and they ended up tracking him down for the money but he'd moved so was quite a delay, he very nearly got a CCJ against him but thankfully they tracked him and he paid up right before the deadline. This was a public sector employer too. So just save yourself a lot of trouble and pay it in the last month, you've had the money.

Pythonesque · 13/08/2020 08:05

Would you have any accrued holiday pay that would help to offset it?

Chloemol · 13/08/2020 08:06

So you knew you were overpaid and spent it? No matter what your manager said it’s obvious any firm would want the m8ney back, you should have saved it and not spent it

Now if you leave you will have to come to some arrangement and tell them you have spent it can you repay them monthly.

londonrach · 13/08/2020 08:13

Yes they can. Its not your money so they take it from final salary

londonrach · 13/08/2020 08:15

If not they will take you to court to get it back. I was overpaid once despite me telling them thry had. It was sorted but all the monies had to be repaid from my salary over several months

oakleaffy · 13/08/2020 08:18

A workmate had this....She was overpaid double!
And it went on. And on.

She said ''It enabled me to clear some bills''.....I think she saw it as a ''freebie''.......
But it rolled on into thousands.

Then she left.

Never knew if she had to repay it, but it made me a bit jealous at the time {we were both 20's} as she had tons of ''free money'' as she saw it.

Palavah · 13/08/2020 08:22

Check whether it has changed your tax code.

blacktop · 13/08/2020 08:36

@Palavah

Check whether it has changed your tax code.

Why would it?

Lazypuppy · 13/08/2020 08:39

You really shouldn't have spent it. Yes they will claim it back out of your final paycheck, so you'll need to live off your savings for that month

Jargo · 13/08/2020 08:42

Do check how it's affected your tax - I was overpaid and then almost moved employment and it would have affected mine.

Unfortunately, yes, they will take it out of final salary, unless you have the conversation with your line manager in writing where she said not to worry about it (even then it's unlikely).

It's really frustrating when people overpay you regularly - do you know the reason for your overpayment?

Todaythiscouldbe · 13/08/2020 08:43

It needs to be paid back out of your savings, which actually really shouldn't be looked at as savings but rather as where you put the excess money you were paid.

Woolly17 · 13/08/2020 08:44

@Palavah

Check whether it has changed your tax code.
Yes! this is important because if you go from being paid £12,500 to being paid £12,600 your tax code will have changed. Just for that last £100 but get in touch with payroll and HR for more help.
Palavah · 13/08/2020 08:45

Because if she were overpaid she may have paid tax at a higher rate, which she should get back.

BarbaraofSeville · 13/08/2020 08:47

Yes! this is important because if you go from being paid £12,500 to being paid £12,600 your tax code will have changed

No it won't. The amount of tax you pay will have changed, but your tax code won't have. Why do so many people comment on things that they don't understand?

The only relevance that tax has to do with the OPs situation is if the overpayment meant that she went over a tax band in a tax year, eg her apparent higher salary meant she went into the 20% band or over the 40% band and she paid tax at the higher rate whereas if she recevied it correctly, it would not have crossed the band and she would have paid it all at the lower rate. Tax codes are a completely separate thing.

BarbaraofSeville · 13/08/2020 08:50

@Palavah

Because if she were overpaid she may have paid tax at a higher rate, which she should get back.
True, but I don't know if there is a mechanism to get it back. The employer would have to resubmit the P60 to HMRC and recalculate tax deducted, but I don't know whether this is allowed or the mistake has to stand.
c75kp0r · 13/08/2020 08:52

re:Why do so many people comment on things that they don't understand?

Because they think they do understand, surely?

Savingshoes · 13/08/2020 08:52

You can negotiate/have a payment plan. I probably wouldn't go through your manager, I would probably go through your payroll and liaise with them and leave them to contact your manager.

Palavah · 13/08/2020 08:55

Fine @barbaraofseville

OP, check whether your overpayment has affected your tax rate, or any other means-tested government benefits.

If they overpaid you, have they also over-contributed to your pension?

IceCreamAndCandyfloss · 13/08/2020 08:59

It’s not a blow to pay it back, I’d have contacted payroll/hr myself after the first month, certainly the second.

You owe the money so need to pay it back regardless of how much it takes of your final salary payment.

NoProblem123 · 13/08/2020 09:01

They won’t necessarily take the balance from your final pay - you will suffer financial hardship if they do.
They can raise you an invoice for it so you become a debtor on their system, like a customer. You can then complete a direct debit mandate in order to pay it off over a period of time.
Whether or not you spent the money is irrelevant- any overpaying is always the company’s fault, never the employee (with the exception of fraud), so although they are right to claim it all back, it’s your right to ensure it’s return is affordable.